Marathon Oil and Partners Announce Approval for Atrush Development in the
Kurdistan Region of Iraq
HOUSTON, Oct. 7, 2013 (GLOBE NEWSWIRE) -- Marathon Oil Corporation (NYSE: MRO)
and its partners announced they have received approval from the Kurdistan
Regional Government for the first phase in the oil development of the Atrush
block in the Kurdistan Region of Iraq.
The Atrush-1 discovery well was drilled in 2011, and is located approximately
50 miles northwest of Erbil. The development project will consist of drilling
three production wells and constructing a central processing facility.
Marathon Oil and its partners expect to achieve first production by early 2015
with an estimated initial gross production of approximately 30,000 barrels of
oil per day (bpd). The approval of the Field Development Plan for Phase 1
provides for a 25-year production period.
Additionally, the Atrush partners are continuing appraisal activities and
preparing to drill a fourth well on the block. Subject to the outcome of
appraisal drilling and Government approval, a potential Phase 2 development is
expected to include another 30,000-bpd production facility. The partners will
also evaluate the feasibility of producing associated natural gas for delivery
to the domestic market.
"Marathon Oil is pleased with the progress that has been made to advance the
development of the Atrush discovery," said Mitch Little, Marathon Oil vice
president of International and Offshore Production Operations. "Approval of
the Atrush Phase 1 Development Plan is an important milestone and confirmation
of the significant resource potential that prompted our entry into the region
in late 2010."
Marathon Oil's wholly owned subsidiary Marathon Oil KDV B.V. holds a 15
percent working interest in the Atrush block. TAQA Atrush B.V., a subsidiary
of TAQA, is the operator with a 39.9 percent working interest; ShaMaran
Petroleum Corp. holds a 20.1 percent working interest through its wholly owned
subsidiary ShaMaran Ventures BV (100 percent owner of General Exploration
Partners, Inc.); and the Kurdistan Regional Government holds a 25 percent
Marathon Oil's asset portfolio in the Kurdistan Region of Iraq includes a 25
percent non-operated working interest in the Sarsang Block, as well as a 45
percent working interest in both the Harir and Safen Blocks in which Marathon
Oil is the operator.
This release contains forward-looking statements with respect to the Atrush
Block, including the planned Phase 1 development project, expected timing and
rates of production for Phase 1, anticipated appraisal and drilling activity,
and the potential development of Phase 2.
Factors that could potentially affect the planned Phase 1 development project
and anticipated appraisal and drilling activity in the Atrush Block include
pricing, supply and demand for liquid hydrocarbons and natural gas, the amount
of capital available for exploration and development, regulatory constraints,
timing of commencing production from new wells, drilling rig availability,
availability of materials and labor, other risks associated with construction
projects, the inability to obtain or delay in obtaining necessary government
or third-party approvals and permits, unforeseen hazards such as weather
conditions, acts of war or terrorist acts and the governmental or military
response thereto, and other geological, operating and economic considerations.
The expected timing and rate of production for Phase 1 and the potential
development of Phase 2 are based on current expectations, good faith estimates
and projections and are not guarantees of future performance. The development
of Phase 2 is further subject to obtaining necessary government and
The foregoing factors (among others) could cause actual results to differ
materially from those set forth in the forward-looking statements. In
accordance with the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995, Marathon Oil Corporation has included in its
Annual Report on Form 10-K for the year ended December 31, 2012, and
subsequent Forms 10-Q and 8-K, cautionary language identifying other important
factors, though not necessarily all such factors, that could cause actual
results to differ materially from those set forth in the forward-looking
CONTACT: Media Relations Contacts:
Lee Warren -- 713-296-4103
John Porretto -- 713-296-4102
Investor Relations Contacts:
Howard Thill -- 713-296-4140
Chris Phillips -- 713-296-3213
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